NIGERIA and its government went agog with the news of a 5% increase in the nation’s Gross Domestic Product (GDP) recorded in the last quarter. The implication of this and possible cause of jubilation is that Nigeria’s economy has improved against all odds. Despite the huge external indebtedness, COVID 19, insecurity, floods and other factors that sought to inhibit the nation’s economic goals; Nigeria has defied the odds to record success where failure was predicted.
WE The Hope felicitate with government and peoples of Nigeria on this repeated feat. However, we are concerned the poverty, unhappiness, depression, and unrest being experienced by Nigerians throughout the six geo-political zones despite economic growth.
THE Gross Domestic Product is often measured by the addition of the difference in value of exports and the value of imports to consumer, business and government spendings. When the result shows a positive increase, it connotes that the economy is growing, and therefore, foreign direct investments that creates domestic capitals is being attracted. In other words, government is making profit. In a corrupt economy, an increase in the GDP actually means that there is more money for government officials to steal. However, we strongly believe, as we are made to believe that the present administration is nipping corruption in the bud.
THE five per cent increase in Nigeria’s GDP is just a revelation to the fact that statistics portrays an expanding economy, and would need a boost to ensure the continued growth and expansion and curtail the increasing inflation rates orchestrated by high cost of living and insecurity in the political system. With this in mind, we also observe keenly that government’s expectations that these improvements in GDP would lead to increased creation of jobs, and hence increased employment; production of capital for investments and poverty reduction, can only occur if other salient factors are in place.
BASED on these, we warn that the Federal Government and peoples of Nigeria should understand that as has been observed elsewhere, the GDP does not reflect the depreciation and depletion of State assets; neither does it reveal if the mixed assets used in the analysis are consistent with Nigeria’s development goals.
IN line with this thought, the United Nations has also admitted that the GDP, while providing a window into human development, failed to account for aspects such as inequality, poverty, human security, or empowerment. Unfortunately, these are the areas of much concern to Nigerians. This is given that after several decades of proclaiming increase in the nation’s GDP, the lives of the average Nigerian has not reflected the benefits of the statistical euphoria. The GDP’s growth statistics is therefore not adequate in measuring the development level of the nation or her citizens, and must therefore be treated with caution and not celebration.
THEREFORE, we opine that the focus of the Nigeria government must be the attainment of a good economy that ensures that people are healthy, happy, and secure and live in an atmosphere of reduced inequality. This would ensure in the end a healthy life expectancy, higher levels of benevolence and more freedom to make unforced socio-political and economic life choices. This is germane given that it takes a happy people to build an effective, enduring, and lasting strong GDP.
IN order to achieve this, we implore that the Government, for the sake of guaranteeing access to investment loans for both small and large-scale investors, should ensure that interest rates are controlled and made investment friendly. When interest rates increase, both investors and consumers would cut back spending thereby slowing down the economy and losing the gains of the celebrated increased GDP.
EVERY effort through, long-term financial planning should be engaged to prevent this economic slowdown. Government’s plan to increase electricity tariffs (for epileptic unmetered power supply), toll gate re-introduction, unpaid workers’ salaries and the total fuel subsidy removal would affect the purchasing power of citizens and therefore negatively affect consumer spending, inflation and investment, plunging the country into more recession.
ALTHOUGH the GDP increase massages government’s ego, thus encouraging us to ‘weep no more child’, we are stoically persuaded that until Government ensures an enduring peaceful investment environment, accompanied with sound economic plans that prohibits corruption and is human development focused, it is not yet Uhuru with our economy.